Pay Protection Policy V2.0

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1 V2.0

2 Table of Contents 1. Introduction Purpose of this Policy/Procedure Scope Definitions / Glossary Ownership and Responsibilities Role of the Chief Executive Role of the Director of Human Resources and Organisational Development (HR and OD) Role of Divisional General Managers/Divisional Directors/Departmental Heads Role of managers Role of individual staff members Role of Human Resources Role of the Payroll Department Role of the Pensions Department Standards and Practice Short-term protection of earnings Long-term protection of earnings Interaction between short and long-term protection Protection of terms and conditions of service Entitlement to opt for terms and conditions of new post Conditions Part-time staff Preservation of pension benefits Application agreement Dissemination and implementation Monitoring compliance and effectiveness Updating and Review Equality and Diversity General statement Equality Impact Assessment Appendix 1. Governance Information Appendix 2. Initial Equality Impact Assessment Form Page 2 of 14

3 1. Introduction 1.1. The Royal Cornwall Hospitals Trust recognises that, in order to develop and improve its services to patients, it must be able to identify the need for change and manage that change taking into account management objectives as well as the aspirations and wellbeing of its staff The Trust is committed to ensuring that staff who are adversely affected by such organisational change/development receive protection of pay and conditions of service in line with this policy This version supersedes any previous versions of this document. 2. Purpose of this Policy/Procedure 2.1. This purpose of the policy is to ensure that staff whose substantive salary is affected by organisational change are treated fairly and equitably by providing guidance relating to the agreement given to short-term protection of earnings and/or long-term protection of basic salary on downgrading It should be read in conjunction with the Trust s policy for Organisational Change, a copy of which is available from the Human Resources folder on the document library. 3. Scope This policy applies to any staff member who, as a consequence of organisational change: is required to move to a new post on a lower band suffers a reduction in basic hours worked within the standard working week suffers a loss of protectable earnings with the following exclusions: medical and dental staff (who have fixed terms and conditions of service) staff on fixed term or temporary contracts beyond the life of the contract staff who are required to change roles due to personal choice, ill-health or conduct or capability reasons (taking account of the disability section of the Equality Act requirements where appropriate), and staff down-banded as action short of dismissal in disciplinary cases where gross misconduct has been substantiated through the disciplinary procedure changes made as a result of normal job rotations, training programmes, changes in staffing levels, operational on-call rotas, acting up, secondments or similar normal business variations. 4. Definitions / Glossary Short-term protection where downgrading is not involved. This includes organisational change programmes that affect additional payments and allowances such as enhanced hours or on-call payments. Short term protection Page 3 of 14

4 applies to a staff member s substantive role and excludes additional hours and overtime payments. Long-term protection the protection of basic salary where downgrading of a substantive role is involved. Organisational change any structural or managerial change. Basic salary the monthly sum due in respect of basic hours worked by the employee concerned within the standard working month. Protectable earnings the basic salary plus regularly paid supplements. Earnings in the new post the total of the salary in the new post plus earnings in respect of over-time, shift work or other additional allowances or duties. Downgrading when the new post, irrespective of its grade title, carries an hourly rate or a salary scale at the maximum point, lower than that applying to the post previously held or lower than that of the personal grade held in the previous post. A more senior post a post which carries an hourly rate or a new salary scale with a maximum point higher than that applying to the new post, or any subsequent post, to which a staff member may have moved or be requested to take up. Suitable alternative employment as defined and managed in accordance with the Trust s policy statement for staff affected by organisational change. 5. Ownership and Responsibilities 5.1. Role of the Chief Executive The Chief Executive is responsible for ensuring that reasonable and equitable procedures and provisions are in place to ensure key skills are not lost and stability of service provision is maintained when staff are adversely affected by organisational change Role of the Director of Human Resources and Organisational Development (HR and OD) The Director of HR and OD is responsible for: ensuring the content of this policy is applied consistently and fairly across the Trust monitoring compliance with this policy advising the Board as required on the effectiveness of the policy Page 4 of 14

5 recommending revisions and development of the policy and associated procedures and guidance as appropriate Role of Divisional General Managers/Divisional Directors/Departmental Heads Divisional General Managers/Divisional Directors/Departmental Heads are responsible for: implementing this policy within their own areas of management accountability Role of managers Managers are responsible for: communicating and explaining the policy to staff applying the policy when organisational change occurs contacting the local HR practitioner for advice and assistance as appropriate in conjunction with the local HR practitioner ensuring the prompt completion of the appropriate contractual/payroll documentation. This will include written confirmation of the details of the pay protection, and the possible option (for NHS Pension Scheme members) of applying for preservation of pension benefits (see section 6.8). ensuring the staff member has the skills and knowledge required to undertake their new post ensuring the redeployed staff member s Personal Development Plan (PDP) is reviewed and updated and, wherever possible, the staff member has access to the appropriate development opportunities to support the maintenance of the skills and experience so that they are competent to apply for posts in their previous banding Role of individual staff members Staff members are responsible for: working flexibly within the requirements of their new band to develop and apply their knowledge and skills to meet the demands of their new post working to retain their skills and expertise so that they are competent to apply for posts in their previous band. accepting any subsequent offer of another suitable post which attracts a basic salary in excess of that applying to their new post if a member of the NHS Pension Scheme, exploring the possible option of the preservation of pension benefits with the Trust s Pensions Department. Page 5 of 14

6 5.6. Role of Human Resources HR Practitioners are responsible for: promoting this policy and providing managers with general advice and support promoting consistency of application across the Trust through the line manager, providing support and advice to staff affected by this policy in conjunction with the manager ensuring the prompt completion of the appropriate contractual/payroll documentation. This will include confirmation of the details of the pay protection, and the possible option (for NHS Pension Scheme members) of applying for preservation of pension benefits (see section 6.8) Role of the Payroll Department The Payroll Department is responsible for: applying pay protection in line with this policy Role of the Pensions Department The Pensions Department is responsible for: providing information, where applicable, to staff exploring the option of the preservation of their pension benefits (see section 6.8) processing any applications received for preserved benefits. 6. Standards and Practice 6.1. Short-term protection of earnings (see section 4 for definition) A staff member to whom this agreement applies is entitled to have certain earnings (protectable earnings) in the former post protected for a period of up to a maximum of 12 months in line with the following table. Continuous service in band Protection period 0-12 months 3 months months 6 months months 9 months 36+ months 12 months Earnings will be calculated on the basis of the monthly average earnings during the three-month period prior to the date of change If, for any particular pay period, the earnings in the new post exceed the protectable earnings then, for that period only, short-term pay protection will not apply. Subsequent months protected earnings will continue to apply. Page 6 of 14

7 When calculating earnings in the new post, the rates used in respect of over-time, shift work or other additional duties shall be those applicable to the new post The Trust, at its discretion, may offer a lump sum payment to a staff member in lieu of short-term protection; the amount to be paid shall be mutually agreed Long-term protection of earnings A staff member to whom this agreement applies, who is moved from one post to another and, as a result, is downgraded, is entitled to full protection of their basic wage or salary with the benefit of any subsequent improvements or increments applying to the scale until: a) the period of protection expires, see below: Continuous service in band Protection period 0-12 months 6 months months 12 months months 18 months 36+ months 24 months b) the staff member is appointed to a post in which the normal basic salary is equal to or exceeds the protected basic salary c) the staff member moves, on their own application, to a post with a basic salary which is lower than that of the existing post d) the staff member retires Where a staff member moves, on their own application, to a post where the basic salary is higher than their existing post but not as high as their former post, the protection shall continue for the period remaining as a result of 6.2.1a) above or until 6.2.1b) to d) occur Any additional earnings derived from work in the new post will be remunerated at the rate appropriate to the new post Where a staff member moves to a role where the hours are fewer than the hours of their previous role, long-term pay protection is assessed on the basis of the actual hours worked in the new post at the hourly rate applicable to the previous role. Any reduction in hours will be covered by short-term protection If the staff member is affected by a subsequent change process which results in a further reduction in their pay banding during the course of the period in which they are receiving pay protection for the first change, the initial period of pay protection will be honoured for the period which remains outstanding. At the conclusion of this period of protection, a further period based on the length of service in the post currently occupied, will apply. Page 7 of 14

8 6.3. Interaction between short and long-term protection Where a staff member has the right to long-term protection and an initial concurrent right to short-term protection, the staff member shall be paid according to the conditions of whichever right is the more favourable until the short-term protection expires If an individual suffers a loss of earnings within the short-term entitlement of more than 15% of salary, long-term pay protection periods will be applied Protection of terms and conditions of service Notice Periods: staff required to move to a new post are entitled to have their contractual period of notice protected during the protection period. Annual Leave: entitlement to annual leave as laid down in the Agenda for Change terms and conditions of service is based on aggregated service and will not be affected by organisational change. Where a staff member moves to a post where the contracted hours are less than those worked in their previous post, their annual leave will be protected on a short-term basis for the period of protection. Excess travel costs: any excess travel costs will be payable in accordance with the prevailing Trust policy Entitlement to opt for terms and conditions of new post Staff members with an entitlement to long-term protection may, at any time, opt for the complete package of remuneration and conditions of service applicable to the new post This option, once exercised, cannot be cancelled Conditions Short-term protection of earnings is conditional on the staff member accepting any subsequent offer of another suitable post which attracts a basic salary in excess of that applying to their new post Long-term protection (where downgrading is involved) is also conditional on the staff member undertaking to move to a more senior position within the Trust provided that it is suitable alternative employment. This undertaking will be deemed to have been accepted unless a staff member advises their manager, in writing, within four weeks of the day on which the downgrading takes effect. If the staff member notifies that this undertaking will not be given, or subsequently refuses to apply for or accept a more senior post within the Trust, then protection will cease to apply unless, exceptionally, continued protection is agreed at the discretion of the Trust Part-time staff Where a part-time member of staff is moved to a new post and downgraded, and the hours in the new post are the same or fewer than before, long- Page 8 of 14

9 term protection entitlement is assessed on the basis of the actual hours worked in the new post and paid at the hourly rate applicable to the previous post If the hours in the new post exceed the hours worked previously, longterm protection entitlement is based on: hours previously worked x rate previously applicable Any reduction in hours will be covered by short-term protection Additional hours in the new post are paid at the rate applicable to the post Preservation of pension benefits Members of the NHS Pension Scheme may be able to preserve their higher pay benefits if they suffer a reduction in pay through no fault of their own This applies equally to the loss of enhancements, etc., at the end of short-term protection and to a band reduction at the end of long-term protection Members of the scheme who wish to preserve benefits at the higher rate must apply to NHS Pensions within three months of the date their pensionable salary is reduced Staff who wish to consider this option should contact the Pensions Department for further information before transfer to the new post Application agreement Staff already on protection under those previous agreements at the date this agreement applies, shall continue to be protected under the terms of those agreements. 7. Dissemination and implementation 7.1 A copy of the policy will be stored electronically in the HR section of the document library on the Trust s internet site. 7.2 A copy of the policy will be circulated to the Heads of HR and HR Practitioners to enable them to participate in and support the implementation of the policy. 7.3 A clear communication will be sent to managers to make them aware that the revised policy has been issued and that they are responsible for cascading the information to their line managers and staff members including those who do not have regular access to The Chair of the JCNC will be advised of the issue of the new policy. Page 9 of 14

10 8. Monitoring compliance and effectiveness Element to be monitored Lead Tool Number of staff on pay protection Any grievances received in respect of application Associate Director of HR and OD List of staff members on pay protection to be obtained from Payroll HR ESR Case Log Frequency Reporting arrangements Acting on recommendations and Lead(s) Change in practice and lessons to be shared Annually Heads of HR, OMG The Associate Director of HR and OD has lead responsibility for ensuring the policy and procedure is monitored and audited to assess effectiveness and that it is applied equally and consistently. The overall effectiveness of the policy will be considered and any remedial actions identified will be recorded in the relevant meeting notes or minutes. The Associate Director of HR and OD will ensure any subsequent recommendations are undertaken. Any policy/system improvements will be actioned in partnership with Staff Side within three months. Any revision to policy will be communicated to staff. 9. Updating and Review This policy will be reviewed every three years or earlier in view of any developments which take place that may include legislative changes, national policy instruction (NHS or Department of Health), Trust Board decision, or request by either management or Staff-Side. 10. Equality and Diversity General statement This document complies with the Royal Cornwall Hospitals NHS Trust service Equality and Diversity statement which can be found in the 'Equality, Diversity & Human Rights Policy' or the Equality and Diversity website Equality Impact Assessment The Initial Equality Impact Assessment Screening Form is at Appendix 2. Page 10 of 14

11 Appendix 1. Governance Information Document Title Date Issued/Approved: May 2010 Date Valid From: 23 Date Valid To: 23 February 2018 Directorate / Department responsible (author/owner): Helen Strickland HR Business Partner for Policies & Compliance Contact details: Brief summary of contents Suggested Keywords: Target Audience Executive Director responsible for Policy: Date revised: This document replaces (exact title of previous version): Approval route (names of committees)/consultation: Divisional Manager confirming approval processes Signature of JCNC Chair or nominated deputy Suzanne Grice-Renault/Angela Mallard Signature of Executive Director giving approval Publication Location (refer to Policy on Policies Approvals and Ratification): Document Library Folder/Sub Folder Links to key external standards This policy sets out the pay protection arrangements that will apply where a member of staff is required to accept a lower banded post, or faces a reduction in other earnings, as a result of organisational change. Pay protection, downgraded, reduction in earnings RCHT PCH CFT KCCG Nick Macklin, Director of Human Resources and Organisational Development OMG, JCNC Helen Cridland Acting Associate Director of Human Resources and Organisational Development (Original signed) (Original signed) Internet & Intranet Intranet Only Human Resources Page 11 of 14

12 Related Documents: Training Need Identified? Agenda for Change Terms & Conditions Agenda for Change Job Matching Policy Organisational Change and Redeployment Policies Starting Salaries Policy No - please see briefing sheet Version Control Table Date Version No Summary of Changes Changes Made by (Name and Job Title) May 2010 V1.0 Feb 2015 V2.0 Initial Issue Full review and re-formatted to comply with Trust template. Sophie Scott Deputy Director of HR Helen Strickland, HR Business Partner All or part of this document can be released under the Freedom of Information Act 2000 This document is to be retained for 10 years from the date of expiry. This document is only valid on the day of printing Controlled Document This document has been created following the Royal Cornwall Hospitals NHS Trust Policy on Document Production. It should not be altered in any way without the express permission of the author or their Line Manager. Page 12 of 14

13 Appendix 2. Initial Equality Impact Assessment Form Name of the strategy / policy /proposal / service function to be assessed (hereafter referred to as policy) (Provide brief description): Directorate and service area: Is this a new or existing Policy? Human Resources Existing Name of individual completing Telephone: assessment: Helen Strickland Policy Aim* The policy aims to describe the agreement given to short-term Who is the strategy / protection of earnings and/or long-term protection of basic salary on policy / proposal / downgrading as a result of organisational change. service function aimed at? 2. Policy Objectives* To guide managers and staff through the arrangements that will apply and the process to follow. 3. Policy intended Outcomes* 4. *How will you measure the outcome? 5. Who is intended to benefit from the policy? 6a) Is consultation required with the workforce, equality groups, local interest groups etc. around this policy? b) If yes, have these *groups been consulted? C). Please list any groups who have been consulted about this procedure. To ensure a fair and equitable process is adopted all cases where the policy applies. See Section 8. Members of staff to whom the policy applies. Yes Yes JCNC, OMG 7. The Impact Please complete the following table. Are there concerns that the policy could have differential impact on: Equality Strands: Yes No Rationale for Assessment / Existing Evidence Age Page 13 of 14

14 Sex (male, female, transgender / gender reassignment) Race / Ethnic communities /groups Disability - Learning disability, physical disability, sensory impairment and mental health problems Religion / other beliefs Marriage and civil partnership Pregnancy and maternity Sexual Orientation, Bisexual, Gay, heterosexual, Lesbian You will need to continue to a full Equality Impact Assessment if the following have been highlighted: You have ticked Yes in any column above and No consultation or evidence of there being consultation- this excludes any policies which have been identified as not requiring consultation. or Major service redesign or development 8. Please indicate if a full equality analysis is recommended. Yes No 9. If you are not recommending a Full Impact assessment please explain why. The policy applies to a role as opposed to individual and will be applied fairly irrespective of any protected characteristics that may exist. Signature of policy developer / lead manager / director Date of completion and submission Names and signatures of members carrying out the Screening Assessment 1. Helen Strickland 2. Keep one copy and send a copy to the Human Rights, Equality and Inclusion Lead, c/o Royal Cornwall Hospitals NHS Trust, Human Resources Department, Knowledge Spa, Truro, Cornwall, TR1 3HD A summary of the results will be published on the Trust s web site. Signed Helen Strickland Date Page 14 of 14

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